You need to pick the corresponding Target first. You already have the UID in BlueButtonUID. Skip the Selected stuff and add Target->Pick instance with UID Blue_Button.BlueButtonUID to event 3. (I'd suggest changing the name to TargetUID).

I could not open your file, but you can alway try using multiple origin image points ans set them outside the object. when the current object is clicked it in turn will spawn a new object on a origin point that is outside your current object.